VCs aren't gatekeepers by nature, but they do operate through trust networks built over decades. To get funded, show a track record of success or exceptional talent, then get a warm introduction. Both founder and investor win only when they build something big together.
There's a perception out there in startup land that VCs are basically rich, arrogant, and they hoard their pools of capital only to disperse it to their friends and family. And if only the entrepreneurs and founders, you know, can express or show the VC how great they are, they'd also release some of that capital to them. Is that true? Are VCs basically the devil?
Yeah, I think there's a couple of ways to answer that question. So one is very simple. No, they're not the devil. The other way to answer it is I think VCs act in circles, right? And even concentric circles. I would argue if you don't know the VC or you can't get warm connected to the VC, it's actually, yes, very difficult to get a check, right? And why is that? Because giving anyone money is based on, you know, the premise of lots and lots of trust. And if they don't know you, then you have to build up this pattern of trust. Sometimes that can take weeks or months. Sometimes that can take years. But yeah, if you just reach out cold and your expectation is someone's just going to give you all this money, I think that's a, you know, false assumption. And I think a lot of people, right, if they feel like they've been personally slighted because they didn't, you know, get a check after having a single conversation with someone, then I think they should reframe how they think about building trust. Like, that's probably one way to think about it. I think another way to answer it is like, there's, you know, insiders in Silicon Valley and I'm sure other ecosystems right? Like these ecosystems have been built literally over decades. Some of the nascent, more nascent ones have been built over years, but most of the top venture ecosystems in the world have been built over decades, right? And what do you get over decades? You get, again, entrenched patterns. You get people who have been there for decades as well that have kind of built their reputations and their success on the back of that ecosystem. And I think that's the, that's the inside circle, right? Those people have built up a pattern of success. and have kind of, you know, earned their right to raise additional funds and kind of like raise venture capital funds. Um, and they're looking for, I could say, you know, repeat patterns, people that have kind of done it already that have demonstrated success who are founders. They're looking to allocate to those folks, but they're also looking for, you know, new folks, right? The, so to speak, you know, Bill Gateses or Mark Zuckerbergs of the world where it's like their first rodeo, but they're still very talented people and you're most likely going to bet on them if you see, you know, a repeating pattern of success. So, you Yeah, I think the net-net is it's hard to break into these circles, um, but it's not impossible. I think the best way to do it is to go in, you know, open-minded with an understanding that, you know, your job is to, you know, demonstrate a pattern of success, build trust, kind of show the pieces of information and the data that convinces VCs to, you know, get excited about an opportunity and to write a check. Because ultimately, I think you, the founder, and venture capitalists are aligned, right? At the end of the day, like you're trying to build— both build a big business and then, you know, both of you are successful if that ends up happening.
